Constellation NewEnergy to supply power to U.S. GSA

RBC Renewable Energy PPA supports a 39 MW Alberta solar project, with Bullfrog Power and BluEarth Renewables, advancing clean energy in a deregulated market through a long-term power purchase agreement in Canada today.

Key Points

A long-term power purchase agreement where RBC buys most output from a 39 MW Alberta solar project via Bullfrog Power.

✅ 39 MW solar build in County of Forty Mile, Alberta

✅ Majority of output purchased by RBC via Bullfrog Power

✅ Supports cost-competitive renewables in deregulated market

The Royal Bank of Canada says it is the first Canadian bank to sign a long-term renewable energy power purchase agreement, a deal that will support the development of a 39-megawatt, $70-million solar project in southern Alberta, within an energy powerhouse province.

The bank has agreed with green energy retailer Bullfrog Power to buy the majority of the electricity produced by the project, as a recent federal green electricity contract highlights growing demand, to be designed and built by BluEarth Renewables of Calgary.

The project is to provide enough power for over 6,400 homes and the panel installations will cover 120 hectares, amid a provincial renewable energy surge that could create thousands of jobs, the size of 170 soccer fields.

The solar installation is to be built in the County of Forty Mile, a hot spot for renewable power that was also chosen by Suncor Energy Inc. for its $300-million 200-MW wind power project (approved last year and then put on hold during the COVID-19 pandemic), and home to another planned wind power farm in Alberta.

BluEarth says commercial operations at its Burdett and Yellow Lake Solar Project are expected to start up in April 2021, underscoring solar power growth in the province.

READ MORE: Wind power developers upbeat about Alberta despite end of power project auctions

It says the agreement shows that renewable energy can be cost-competitive, with lower-cost solar contracts in a deregulated electricity market like Alberta’s, adding the province has some of the best solar and wind resources in Canada.

“We’re proud to be the first Canadian bank to sign a long-term renewable energy power purchase agreement, demonstrating our commitment to clean, sustainable power, as Alberta explores selling renewable energy at scale,” said Scott Foster, senior vice-president and global head of corporate real estate at RBC.

Related News

• Electricity Forum News

• Renewable Energy News

Global Renewable LCOE Trends reveal offshore wind costs down 32%, with 10MW turbines, lower CAPEX and OPEX, and parity for solar PV and onshore wind in Europe, China, and California, per BloombergNEF analysis.

Key Points

Benchmarks showing falling LCOE for offshore wind, onshore wind, and solar PV, driven by larger turbines and lower CAPEX

✅ Offshore wind LCOE $78/MWh; $53-64/MWh in DK/NL excl. transmission

✅ Onshore wind $47/MWh; solar PV $51/MWh, best $26-36/MWh

✅ Cost drivers: 10MW turbines, lower CAPEX/OPEX, weak China demand

World offshore wind costs have fallen 32% from just a year ago and 12% compared with the first half of 2019, according to a BNEF long-term outlook from BloombergNEF.

In its latest Levelized Cost of Electricity (LCOE) Update, BloombergNEF said its current global benchmark LCOE estimate for offshore wind is $78 a megawatt-hour.

“New offshore wind projects throughout Europe, including the UK's build-out, now deploy turbines with power ratings up to 10MW, unlocking CAPEX and OPEX savings,” BloombergNEF said.

In Denmark and the Netherlands, it expects the most recent projects financed to achieve $53-64/MWh excluding transmission.

New solar and onshore wind projects have reached parity with average wholesale power prices in California and parts of Europe, while in China levelised costs are below the benchmark average regulated coal price, according to BloombergNEF.

The company's global benchmark levelized cost figures for onshore wind and PV projects financed in the last six months are at $47 and $51 a megawatt-hours, underscoring that renewables are now the cheapest new electricity option in many regions, down 6% and 11% respectively compared with the first half of 2019.

BloombergNEF said for wind this is mainly down to a fall in the price of turbines – 7% lower on average globally compared with the end of 2018.

In China, the world’s largest solar market, the CAPEX of utility-scale PV plants has dropped 11% in the last six months, reaching $0.57m per MW.

“Weak demand for new plants in China has left developers and engineering, procurement and construction firms eager for business, and this has put pressure on CAPEX,” BloombergNEF said.

It added that estimates of the cheapest PV projects financed recently – in India, Chile and Australia – will be able to achieve an LCOE of $27-36/MWh, assuming competitive returns for their equity investors.

Best-in-class onshore wind farms in Brazil, India, Mexico and Texas can reach levelized costs as low as $26-31/MWh already, the research said.

Programs such as the World Bank wind program are helping developing countries accelerate wind deployment as costs continue to drop.

BloombergNEF associate in the energy economics team Tifenn Brandily said: “This is a three- stage process. In phase one, new solar and wind get cheaper than new gas and coal plants on a cost-of- energy basis.

“In phase two, renewables reach parity with power prices. In phase three, they become even cheaper than running existing thermal plants.

“Our analysis shows that phase one has now been reached for two-thirds of the global population.

“Phase two started with California, China and parts of Europe. We expect phase three to be reached on a global scale by 2030.

“As this all plays out, thermal power plants will increasingly be relegated to a balancing role, looking for opportunities to generate when the sun doesn’t shine or the wind doesn’t blow.”

Related News

• Electricity Forum News

• Renewable Energy News

New Mexico Energy Transition Act advances zero-carbon electricity, mandating public utilities deliver carbon-free electricity by 2045, with renewable targets of 50 percent by 2030 and 80 percent by 2040 to accelerate grid decarbonization.

Key Points

A state law requiring utilities to deliver carbon-free electricity by 2045, with 2030 and 2040 renewable targets.

✅ 100 percent carbon-free power from utilities by 2045

✅ Interim renewable targets: 50 percent by 2030, 80 percent by 2040

✅ Aligns with clean energy commitments in HI, CA, and DC

The New Mexico House of Representatives passed the Energy Transition Act Tuesday afternoon, sending the carbon-free electricity bill, a move aligned with proposals for a Clean Electricity Standard at the federal level, to Gov. Michelle Lujan Grisham.

Her opinions on it are known: she campaigned on raising the share of renewable energy, a priority echoed in many state renewable ambitions nationwide, and endorsed the ETA in a recent column.

"The governor will sign the bill as quickly as possible — we're hoping it is enrolled and engrossed and sent to her desk by Friday," spokesperson Tripp Stelnicki said in an email Tuesday afternoon.

Once signed, the legislation will commit the state to achieving zero-carbon electricity from public utilities by 2045. The bill also imposes interim renewable energy targets of 50 percent by 2030 and 80 percent by 2040, similar to Minnesota's 2040 carbon-free bill in its timeline.

The Senate passed the bill last week, 32-9. The House passed it 43-22.

The legislation would enter New Mexico into the company of Hawaii, California, where climate risks to grid reliability are shaping policy, and Washington, D.C., which have committed to eliminating carbon emissions from their grids. A dozen other states have proposed similar goals. Meanwhile, the Green New Deal resolution has prompted Congress to discuss the bigger task of decarbonizing the nation overall.

Though grid decarbonization has surged in the news cycle in recent months, even as some states consider moves in the opposite direction, such as a Wyoming bill restricting clean energy that would limit utility choices, New Mexico's bill arose from a years-long effort to rally stakeholders within the state's close-knit political community.

Related News

• Electricity Forum News

• Energy Policy News

Negative Electricity Prices in France signal oversupply from wind and solar, stressing the wholesale market and grid. Better storage, demand response, and interconnections help balance renewables and stabilize prices today.

Key Points

They occur when renewable output exceeds demand, pushing power prices below zero as excess energy strains the grid.

✅ Driven by wind and solar surges with low demand

✅ Challenges thermal plants; erodes margins at negative prices

✅ Needs storage, demand response, and cross-border interties

France has recently experienced an unusual and unprecedented situation in its electricity market: negative electricity prices. This development, driven by a significant influx of renewable energy sources, highlights the evolving dynamics of energy markets as countries increasingly rely on clean energy technologies. The phenomenon of negative pricing reflects both the opportunities and renewable curtailment challenges associated with the integration of renewable energy into national grids.

Negative electricity prices occur when the supply of electricity exceeds demand to such an extent that producers are willing to pay consumers to take the excess energy off their hands. This situation typically arises during periods of high renewable energy generation coupled with low energy demand. In France, this has been driven primarily by a surge in wind and solar power production, which has overwhelmed the grid and created an oversupply of electricity.

The recent surge in renewable energy generation can be attributed to a combination of favorable weather conditions and increased capacity from new renewable energy installations. France has been investing heavily in wind and solar energy as part of its commitment to reducing greenhouse gas emissions and transitioning towards a more sustainable energy system, in line with renewables surpassing fossil fuels in Europe in recent years. While these investments are essential for achieving long-term climate goals, they have also led to challenges in managing energy supply and demand in the short term.

One of the key factors contributing to the negative prices is the variability of renewable energy sources. Wind and solar power are intermittent by nature, meaning their output can fluctuate significantly depending on weather conditions, with solar reshaping price patterns in Northern Europe as deployment grows. During times of high wind or intense sunshine, the electricity generated can far exceed the immediate demand, leading to an oversupply. When the grid is unable to store or export this excess energy, prices can drop below zero as producers seek to offload the surplus.

The impact of negative prices on the energy market is multifaceted. For consumers, negative prices can lead to lower energy costs as wholesale electricity prices fall during oversupply, and even potential credits or payments from energy providers. This can be a welcome relief for households and businesses facing high energy bills. However, negative prices can also create financial challenges for energy producers, particularly those relying on conventional power generation methods. Fossil fuel and nuclear power plants, which have higher operating costs, may struggle to compete when prices are negative, potentially affecting their profitability and operational stability.

The phenomenon also underscores the need for enhanced energy storage and grid management solutions. Excess energy generated from renewable sources needs to be stored or redirected to maintain grid stability and avoid negative pricing situations. Advances in battery storage technology, such as France's largest battery storage platform, and improvements in grid infrastructure are essential to addressing these challenges and optimizing the integration of renewable energy into the grid. By developing more efficient storage solutions and expanding grid capacity, France can better manage fluctuations in renewable energy production and reduce the likelihood of negative prices.

France's experience with negative electricity prices is part of a broader trend observed in other countries with high levels of renewable energy penetration. Similar situations have occurred in Germany, where solar plus storage is now cheaper than conventional power, the United States, and other regions where renewable energy capacity is rapidly expanding. These instances highlight the growing pains associated with transitioning to a cleaner energy system and the need for innovative solutions to balance supply and demand.

The French government and energy regulators are closely monitoring the situation and exploring measures to mitigate the impact of negative prices. Policy adjustments, market reforms, and investments in energy infrastructure are all potential strategies to address the challenges posed by high renewable energy generation. Additionally, encouraging the development of flexible demand response programs and enhancing grid interconnections with neighboring countries can help manage excess energy and stabilize prices.

In the long term, the rise of renewable energy and the occurrence of negative prices represent a positive development for the energy transition. They indicate progress towards cleaner energy sources and a more sustainable energy system. However, managing the associated challenges is crucial for ensuring that the transition is smooth and economically viable for all stakeholders involved.

In conclusion, the recent instance of negative electricity prices in France highlights the complexities of integrating renewable energy into the national grid. While the phenomenon reflects the success of France’s efforts to expand its renewable energy capacity, it also underscores the need for advanced grid management and storage solutions. As the country continues to navigate the transition to a more sustainable energy system, addressing these challenges will be essential for maintaining a stable and efficient energy market. The experience serves as a valuable lesson for other nations undergoing similar transitions and reinforces the importance of innovation and adaptability in the evolving energy landscape.

Related News

• Electricity Forum News

• Renewable Energy News

Ontario Electricity Pricing Pilot Projects explore alternative rates beyond time-of-use, with LDCs and the Ontario Energy Board testing dynamic pricing, demand management, smart-meter billing, and residential customer choice to enhance service and energy efficiency.

Key Points

Ontario LDC trials testing alternatives to time-of-use rates to improve billing, demand response, and efficiency.

✅ Data shared across LDCs and Ontario Energy Board provincewide

✅ Tests dynamic pricing, peak/off-peak plans, demand management

✅ Insights to enhance customer choice, bills, and energy savings

The results from three electricity pilot projects being offered in southern Ontario will be valuable to utility companies across the province.

Ontario Energy Minister Glenn Thibeault was in Barrie on Tuesday to announce the pilot projects, which will explore alternative pricing plans for electricity customers from three different utility companies, informed by the electricity cost allocation framework guiding rate design.

"Everyone in the industry is watching to see how the pilots deliver.", said Wendy Watson, director of communications for Greater Sudbury Utilities.

"The data will be shared will all the LDCs [local distribution companies] in the province, and probably beyond...because the industry tends to share that kind of information."

Most electricity customers in the province are billed using time-of-use rates, including options like the ultra-low overnight rates that lower costs during off-peak periods, where the cost of electricity varies depending on demand.

The Ontario Energy Board said in a media release that the projects will give residential customers more choice in how much they pay for electricity at different times, reflecting changes for Ontario electricity consumers that expand plan options.

Pilot projects can help improve service

Watson says these kinds of projects give LDCs the chance to experiment and explore new ways of delivering their service, including demand-response initiatives like the Peak Perks program that encourage conservation.

"Any pilot project is a great way to see if in practice if the theory proves out, so I think it's great that the province is supporting these LDCs," she says.

GSU recently completed its own pilot project, the Home Energy Assessment and Retrofit (HEAR) program, which focused on customers who use electric baseboards to heat their homes, amid broader provincial support for electric bills to ease costs."We installed some measures, like programmable thermostats and a few other pieces of equipment into their house," Watson says. "We also made some recommendations about other things that they could do to make their homes more energy efficient."

At the end of the program, GSU provided customers with a report so that they could the see the overall impact on their energy consumption.

Watson says a report on the results of the HEAR program will be released in the near future, for other LDCs interested in new ways to improve their service.

"We think it's incumbent on every LDC...to see what ideas that they can come up with and get approved so they can best serve their customers."

Related News

• Electricity Forum News

• Energy Policy News

DOE Grid Resilience Pricing Rule faces FERC review as energy groups challenge an expedited timeline to reward coal and nuclear for reliability in wholesale markets, impacting natural gas, renewables, baseload economics, and grid pricing.

Key Points

A DOE proposal directing FERC to compensate coal and nuclear plants for reliability attributes in wholesale markets.

✅ Industry coalition seeks normal FERC timeline and review

✅ Impacts wholesale pricing, baseload economics, reliability

✅ Request for 90-day comments and reply period

A coalition of 11 industry groups is pushing back on Energy Secretary Rick Perry's efforts to quickly implement a major change to the way electric power is priced in the United States.

The Energy Department on Friday proposed a rule that stands to bolster coal and nuclear power plants by forcing the regional markets that set electricity prices to compensate them for the reliability they provide. Perry asked the Federal Energy Regulatory Commission to consider and finalize the rule within 60 days, including a 45-day period during which stakeholders can issue comments.

On Monday, groups representing petroleum, natural gas, electric power and renewable energy interests including ACORE urged FERC to reject the expedited process, as well as the Department of Energy's request that the regulatory commission consider putting in place an interim rule.

They say the time frame is "aggressive" and the department didn't provide adequate justification for fast-tracking a process that could have huge impacts on wholesale electricity markets.

"This is one of the most significant proposed rules in decades related to the energy industry and, if finalized, would unquestionably have significant ramifications for wholesale markets under the Commission's jurisdiction," the groups said in the motion filed with FERC.

"The Energy Industry Associations urge the Commission to reject the proposed unreasonable timelines and instead proceed in a manner that would afford meaningful consideration of public comments and be consistent with the normal deliberative process that it typically affords such major undertakings," they said.

The groups are requesting a 90-day comment period, as well as another period for reply comments. FERC, which has authority to regulate interstate transmission and sale of electricity and natural gas, is not required to decide in favor of the rule but, amid a recent FERC decision that drew industry criticism, must consider it.

Expediting the process or imposing an interim rule is generally limited to emergencies, the groups said. The Energy Department's letter to FERC does not even attempt to establish that an immediate threat to U.S. electricity reliability exists, they allege.

• A coalition of energy industry groups asked regulators to reject a rule proposed by the U.S. Department of Energy on Friday.
• The rule would bolster coal-fired and nuclear power plants by requiring wholesale markets to compensate them for certain attributes.
• The groups say the Energy Department proposed "unreasonable timelines" for stakeholders to offer feedback on a rule with "significant ramifications for wholesale markets."

The groups cite a recent Energy Department report on grid reliability that concluded: "reliability is adequate today despite the retirement of 11 percent of the generating capacity available in 2002, as significant additions from natural gas, wind, and solar have come online since then."

The Department of Energy did not return a request for comment.

The Energy Department's rule marks a flashpoint in the battle between natural gas-fired and renewable energy and so-called baseload power sources like coal and nuclear.

Separately, coal and business groups have supported the EPA in litigation over the Affordable Clean Energy rule, as documented in legal challenges brought during the rule's defense.

Gas, wind and solar power have eaten into coal and nuclear's share of U.S. electric power generation in recent years. That is thanks to a boom in U.S. gas production that has pushed down prices, the rapid adoption of subsidized renewable energy and President Barack Obama's efforts to mitigate emissions from power plants, which the Trump administration has sought to replace with a tune-up as policies shift.

Electric power is priced in deregulated, wholesale markets in many parts of the country. Utilities typically draw on the cheapest power sources first.

Some worry that the retirement of coal-fired and nuclear power plants undermines the nation's ability to reliably and affordably deliver electricity to households and businesses.

President Donald Trump has vowed to revive the ailing coal industry, declaring an end to the 'war on coal' in public remarks. Trump, Perry and other administration officials reject the consensus among climate scientists that carbon emissions from sources like coal-fired plants are the primary cause of global warming.

Related News

• Electricity Forum News

• Energy Policy News